Shortel files to raise up to $85 Million in IPO!!!

[Forum]

I just knew they were going to go public this year. I need to buy some stock...and hold on, this will be one hot stock for those 'in the know'

-Charles

Link to article:
http://www.marketwatch.com/news/stor...003ED4805F9%7D

[svalles]

Thanks for the heads up

[cburgy]

I just knew they were going to go public this year. I need to buy some stock...and hold on, this will be one hot stock for those 'in the know'

-Charles

Link to article:
http://www.marketwatch.com/news/stor...003ED4805F9%7D

Yup, I am defintely planning on purchasing stock!

[Justin Phillips]

This is the only thing that makes me a little nervous:


ShoreTel filed for an IPO to raise $85 million on February 12. For the three months ending September 30, the company reported net income of $1 million on total revenues of $20.4 million, compared with net income of $103,000 on total revenues of $11.2 million for the same period a year ago.

This is from http://www.redherring.com/Article.as...A+Winter+Break

[cburgy]

This is the only thing that makes me a little nervous:


ShoreTel filed for an IPO to raise $85 million on February 12. For the three months ending September 30, the company reported net income of $1 million on total revenues of $20.4 million, compared with net income of $103,000 on total revenues of $11.2 million for the same period a year ago.

This is from http://www.redherring.com/Article.as...A+Winter+Break

Interesting, I had no idea what they were making before as they were pretty tight lipped on financials.

That being said, they went from about 1% net income margin (low) to 5% net income margin within a year. That is an excellent increase. Seeing net income in the 5-10% range would seem acceptable for the industry to me. The R&D demands and staffing requirements of the industry are pretty beefy. If net revenue was around that range, then I would run like hell.

The profit % will continue to rise as they have taken moves to drive costs down.